An Increase in a Lump-Sum Tax Has the Same Effect

question 82

True/False

An increase in a lump-sum tax has the same effect on equilibrium GDP as an equal decrease in government purchases.

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Definitions:

Eating Behavior

The range of psychological and physiological processes that influence how and what individuals consume for food.

Stimulus Discrimination

The learned ability to differentiate between similar stimuli and respond only to the original stimulus in conditioning.

Extinction

In behavior psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Systematic Desensitization

Therapy technique that involves exposing a client to increasingly anxiety-producing stimuli or situations while having the client relax at the same time.